One advantage of using a trust in an estate plan is that a trust administration is not public record. Unlike a probate estate, the details of the decedent’s trust remain private. However, that does not mean that the trustee can leave the trust beneficiaries in the dark. Since there is no court reviewing the trustee’s actions, Ohio law requires trustees to keep beneficiaries reasonably informed about the status of the trust and any facts that are necessary to allow the beneficiaries to protect their interests.

First and foremost, trustees must promptly respond to a beneficiary's request for information related to the trust. The trustee must notify the current beneficiaries of the trustee's name, address, and telephone number. Also, the trustee must notify the current beneficiaries of the trust's existence, of the identity of the settlor (the person who established the trust), of the right to request a copy of the trust instrument, and of the right to a trustee's report.

Upon a beneficiary's request, a trustee must furnish to the beneficiary a copy of the trust instrument. Unless the beneficiary expressly requests the complete document, a trustee may provide a redacted version of the trust that includes only those provisions that are relevant to the beneficiary's interest. If the beneficiary requests a copy of the entire trust instrument after receiving a redacted copy, the trustee must furnish a copy of the entire trust instrument to the beneficiary.

The trustee has a statutory duty to send to beneficiaries a report of trust property at least annually and at the trust's termination. The report should include liabilities, receipts, and disbursements, including the amount of the trustee's compensation, a listing of the trust assets, and, if feasible, the trust assets' respective market values.

The trustee must also notify the current beneficiaries in advance of any change in the method or rate of the trustee's compensation. If a trustee resigns his or her position, the former trustee must send a report to the current beneficiaries for the period during which the trustee served. A beneficiary may always waive the right to a trustee's report or other information otherwise required to be furnished.

When administering a trust, it is important to consult with a trusted attorney to understand all of the duties and requirements involved. That way, beneficiaries know what to expect and the trust administration will run more smoothly. Laribee Law, LLP is here to assist you.

Michael Laribee is a partner in the Medina law firm of Laribee Law, LLP. This article is intended to provide general information about the law. It is not intended to give legal advice. Readers are urged to seek advice from an attorney regarding their specific issues and rights.